Is HEX the Biggest Ponzi Scheme in Digital Currency History?
Not too long ago, Richard Schueler, also known as Richard Heart, was in a great position. He introduced and started promoting HEX, which was presented as the world's first blockchain Certificate of Deposit in 2018. Heart often boasted on social media about his million-dollar shopping sprees and the luxurious items he had purchased.
Now, HEX is no more, and Heart is facing serious charges from the Securities and Exchange Commission (SEC), including conducting unregistered securities offerings and fraud. The unregistered securities charges are related to his promotion of HEX, PulseChain, and PulseX. The fraud charges are connected to his alleged misuse of at least $12 million from investors to buy luxury items.
During this spree, he bought high-end watches, sports cars, and even a 555-carat black diamond called 'The Enigma.' He had previously claimed to own the world's largest black diamond in his bio, but he quickly removed any reference to it and the tokens when rumors circulated that the SEC was investigating.
Just like with FTX CEO Sam Bankman-Fried, CoinGeek had previously warned potential investors about Heart.
In the past, Heart was sued for violating anti-spam laws in Washington State during the early days of the internet. He has also been linked to shady activities like blackmail, robbery, and corruption in Panama, although no charges were filed against him for these allegations.$HEX has now had over a 99% drawdown from the top, in one of the most impressive ponzi scheme collapses in the history of finance.
— depression BTC (@depression2019) August 5, 2023
At its peak, $HEX marketcap was worth over $50 billion dollars. I think more people need to talk about how insane this was pic.twitter.com/kx4maythuV
In 2020, CoinGeek raised concerns about suspicious transactions related to HEX. Heart responded on social media, dismissing these concerns as "stupid."
Now, HEX has crashed from a peak of $50 billion to less than 10% of that value today. HEX investors are left in disarray as their supposed wealth disappears in real-time.
Why are Dr. Craig Wright's Biggest Opponents Fraudsters?
Heart has been one of Dr. Craig Wright's most vocal critics. He has consistently attacked Dr. Wright, even heckling him off stage once, accusing him of lying about being the inventor of Bitcoin.
Interestingly, Heart now faces fraud charges (with more likely to come), while Dr. Wright has accumulated an extensive blockchain intellectual property portfolio and secured significant legal victories in his mission to prove in court that he is indeed the inventor of Bitcoin.
It's intriguing how Dr. Wright's loudest opponents, like Heart, Ricardo Spagni of Monero, and Changpeng Zhao of Binance, have all faced legal issues, while Dr. Wright has triumphed in court cases.
CoinGeek readers are likely aware of the reason behind this phenomenon: Dr. Wright is who he claims to be, and those labeling him a scammer know that he represents the end of their quick-money schemes and the start of something genuine: true blockchain utility.
Richard Heart's projects have come to an end. The other enemies of Dr. Wright and Bitcoin will likely follow suit.
Stay informed with CoinGeek's Crypto Crime Cartel series, which examines the actions of various groups in the industry, from BitMEX and Binance to Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple, Ethereum, FTX, and Tether. These groups have co-opted the digital asset revolution, turning the industry into a risky landscape for both newcomers and experienced players.
New to blockchain? Explore CoinGeek's Blockchain for Beginners section, the ultimate resource for learning about blockchain technology.
